In this study, a bionanocomposite based food packaging film was designed to reduce environmental hazards. Cellulose nanoparticles (CNP) were prepared from the non-edible part of jackfruit (Artocarpus heterophyllus) by alkaline treatment, bleaching, and acid hydrolysis. The newly designed bionanocomposite film consists of CNP, polyvinyl alcohol (PVA) and fennel seed essential oil (EO). The composition of the film was optimized using central composite design of response surface methodology. Quadratic models were developed for responses such as elongation at break, tensile strength, free radical scavenging (antioxidant) activity, and antimicrobial activity. The optimized film reported seven-fold increase in tensile strength and six-fold in elongation at break compared to PVA film due to incorporation of CNP. Quality of the optimized film was further confirmed by evaluating morphological features, surface characteristics, physical and thermal properties. The results suggest that the newly designed EO incorporated CNP-PVA bionanocomposite film as a better alternative for traditional food packaging materials.